Value Builder BUSINESS SALES | ACQUISITIONS | STRATEGY Helping you create sustainable equity value.
18
Value Builder BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk Helping you create sustainable equity value
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Transcript of Value Builder BUSINESS SALES | ACQUISITIONS | STRATEGY Helping you create sustainable equity value.
Value Builder
BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk
Helping you create sustainable equity value
Multiple bandwidths- pre tax
BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk
Mu
ltiple
pre
tax P
BIT
or E
BIT
DA
50 250 500 750 1,000 1,500 2,000
10
9
8
7
6
5
4
3
2
1
Most likely Least likely
What Influences the Multiple ?
Multiple Influencers
BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk
TRUE
GROWTH
Company
Multiple Influencers
BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk
TRUE
GROWTH
Company
Multiple
Multiple Influencers
BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk
TRUE
GROWTH
Company
MultipleRisk
BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk
Company Foundation
True Growth - The Role of the MD
BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk
The Profit Engine
Company Foundation
Plan strategy. Don’t manage issuesCreate Dashboard- Strategy KPI
True Growth - The Role of the MD
BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk
The Profit Engine
Management Strategy
Company Foundation
True Growth - The Role of the MD
BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk
The Profit Engine
Management Strategy
Company Strategy
Company Foundation
True Growth - The Role of the MD
Acquisitions
BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk
Synergy (extra sales)
Economies of Scale (cost savings)
Company A Company B
Merged Company
Economies/synergy 1 + 1 = 3
Bigger profits = Higher Multiple?
Shareholder Fruit
What Drives the Multiple?
BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk
What Drives the Multiple?
Income – The Client Base
BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk
What Drives the Multiple?
The Four Areas of Management
Income – The Client Base
BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk
What Drives the Multiple?
The Four Areas of Management
Income – The Client Base
Brand Name
What Drives the Multiple?
The Four Areas of Management
Income – The Client Base
Brand Name
Strategic Track Record
BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk
What Drives the Multiple?
The Four Areas of Management
Income – The Client Base
Brand Name
Strategic Track Record
Company Positioning
BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk
What Drives the Multiple?
The Four Areas of Management
Income – The Client Base
Brand Name
Strategic Track Record
Company Positioning
Growth Potential
Economic and Political Outlook
BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk
